CDO Issuance Continues To Increase

Collateralized debt obligations rated by Moody's Investors Service set records for issuance and volume last quarter.

  • 22 Nov 2006
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Collateralized debt obligations rated by Moody's Investors Service set records for issuance and volume last quarter. The number of rated transactions grew 14% to 172 from the second quarter. Compared to the third quarter of 2005, the number of new transactions grew 76%, according to the ratings agency. Moody's anticipates this momentum will continue to the end of the year. It predicts that all of 2006 will be about 55% more than last year's deals and volume.

Collateralized loan obligations, cash resecuritizations and hybrid CDOs made up about 50% of the new ratings in the third quarter and about 72% of new volume. There were 45 CLOs in the third quarter and 23 newly rated cash resecuritizations. For U.S. CDOs, about 48% of the collateral was corporate bonds, while 39% was structured debt.

The ratings agency, however, did not see as much utilization of loan-only credit default swaps as it had anticipated. It said it was used to a limited degree in synthetically referencing single-name loans in existing cash flow CLOs. Author Richard Michalek, v.p. and senior credit officer, was traveling and could not be reached. Suzanna Sava, analyst and a co-author, did not return a call.

  • 22 Nov 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 13,295 25 18.56
2 Bank of America Merrill Lynch (BAML) 8,059 25 11.25
3 Lloyds Bank 6,979 21 9.74
4 Citi 6,256 16 8.73
5 JP Morgan 5,220 8 7.29

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 104,581.71 299 10.92%
2 Bank of America Merrill Lynch 86,347.40 249 9.02%
3 JPMorgan 80,990.39 237 8.46%
4 Wells Fargo Securities 77,934.65 225 8.14%
5 Credit Suisse 63,570.21 165 6.64%